CARFAX reports 15.5 per cent inventory spike amid dropping prices

In a recent mid‑year 2026 marketplace update, CARFAX Canada says affordability concerns, rising living costs and economic uncertainty continue to weigh on demand, even as inventory growth and price stability support gradual recovery. The Bank of Canada’s decision to hold its key rate at 2.25 per cent in July reflects ongoing economic uncertainty and inflationary pressure.

Nationally, the average selling price rose 0.2 per cent month‑over‑month in June but remained 4.7 per cent lower than a year earlier. Inventories climbed 15.5 per cent compared with May and 2.5 per cent year‑over‑year, giving buyers more choice than at the start of 2026.

June recorded 277,361 used‑vehicle transactions, up 1.3 per cent from May but down 2.9 per cent year‑over‑year. Total sales for the first half of 2026 reached 1.49 million units, a 4.2 per cent decline from the same period in 2025.

Electric vehicles remained one of the strongest segments. The average used EV price reached $42,834 in June, marking a second consecutive monthly increase, though still 1.7 per cent below June 2025. Inventories of EVs and hybrids continued to rise, but entry‑level models remain scarce.

Regional price trends varied. Vancouver remained the most expensive market at more than $44,995, up 10.2 per cent year‑over‑year, while Quebec continued to offer the lowest average prices among major provinces. Atlantic Canada was the only region where prices increased compared with last year.

“Dealers who understand the complex nature of today’s used car market, and who research trends and what they foreshadow, are better positioned to achieve their sales goals. This in‑depth knowledge allows them to buy, evaluate and manage inventory even more effectively,” said Shawn Vording, president of CARFAX Canada. “Acquiring new used vehicles is becoming increasingly difficult. Finding the right ones is a full‑time job.”

The average selling price in June reached $31,487, remaining within the narrow $31,000 to $31,500 range seen over the past five months. About 32 per cent of vehicles in stock carried reported damage history.

Used EVs average price rose to $42,834 in June even as entry‑level EVs remained scarce and Tesla models continued to dominate supply.

Regionally, British Columbia posted the highest provincial average price at $36,655, while Quebec remained the most affordable at $28,582. Atlantic Canada was the only region with year‑over‑year price growth at 1.7 per cent, and Ontario and Alberta recorded the steepest declines.